Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Arable Farmers are not sharing the Rural Boom

16 February 2001

PR 22/2001

Arable Farmers are not sharing the Rural Boom

"Farmers whose principal income is derived from arable crops are not receiving the higher incomes reported for other farm sectors." Federated Farmers of New Zealand Grains Council Chairman Neil Barton said to-day.

Recent media comment has the rural sector booming. Some export sectors have benefited from world commodity price rises, coupled to the recent low value of the New Zealand dollar. Both meat and dairy producers are receiving increased prices after a long period of low returns.

"Not so the arable farmer," said Mr Barton. "Many arable crops are contracted well ahead. This allows growers to forward plan the management of crops, while allowing processors to secure product at a known price. Most crops are contracted about nine months ahead although some feed wheat contracts are for three years at a fixed price."

Arable farmers are locked in to contracts signed in April or May last year. These contracts stated both a price and a time of delivery for grain and herbage seeds. The prices ruling nine months ago are now well below world prices, when converted to New Zealand dollars.

Arable farmers have at the same time, had to pay the cost increases in both fertiliser and fuel prices, as well pay for other farm inputs that have increased in price because of the low New Zealand dollar. Fertiliser and fuel are 'big-ticket' items on an arable farm and must be paid for before any returns are received.

"It is not correct to say, "things are booming down on the farm". Arable farmers fear they will not receive any benefit from the low New Zealand dollar and will only be left with the increased costs," said Mr Barton.

ENDS

For further information:- Neil Barton Home:- (03) 688-8238 Mobile- (021) 441-125 Kevin Geddes Work:- (03) 307-8148 Home:- (03) 696-3870 Mobile:- (025) 203-3437


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news